Best Of Value Creating Actitivities

54 %
46 %
Information about Best Of Value Creating Actitivities
Business & Mgmt

Published on February 23, 2009

Author: smehro

Source: slideshare.net

 

“ Most managers describe strategic positioning in terms of their customers: ‘Southwest Airlines serves price- and convenience-sensitive travelers,’ for example. But the essence of strategy is in the activities - choosing to perform activities differently or to perform different activities than rivals. Otherwise, a strategy is nothing more than a marketing slogan that will not withstand competition.” Michael E. Porter

“ No question asked” Return Policy Computer-Aided Store Design Frequent performance Check Reduce “Shrinkage” More Incentives Improving Logistics Wired Merchandise Requests Direct Connection With Vendors Building Distribution Center (150~300 -mile radius)‏ Diversification Small town ↓ Large town It’s Own Trucks and Trailers Quick Delivery & Using Return Trips Much less Inventory Satellite Network Measuring the success of Promotions Marketing On Lowest Prices Efficient Store Operations Focus on Increasing Awareness of New stores Takeover Specialty Departments Bargain-Basement Acquisition More Hard goods Increase in Sales per average ft 2 More Available Selling Space UPC at the Point of Sale Administration More SKUs Human Resources Management Testing Different Mixes Locating VPs in Same Area Everyday Low Prices Reduce Wage Expenses

Wal-Mart’s Activity System Store merchandise In distribution center Providing “ Everyday Low Prices” Buy in volume at Attractive prices Centralized purchasing Inventory control Efficient Distribution network Low operating expenses Central computers Linked to vendors Hub and Spoke Distribution network Lease stores $20 million Satellite system Computer aided Design for Merchandise mix Regional vice Presidents live in Bentonville and Flown to stores Employee Salaries “ We care about Our people” “ No questions Asked” Return Policy Increased store Size and increase In the number of Store locations Computerized System in each store UPC at point of sale Store manager Salary. Autonomy in Ordering stock and Setting displays Efficient Inbound Logistics

Distribution Centers

 

Walmart state of the art supply chain management systems Walmart Map of the World

 

Outbound Logistics 2-3 stores served by one truck Mdse. Delivered to the stores within 48 hours Return merchandise picked up; trucks 60% full on return

2-3 stores served by one truck

Mdse. Delivered to the stores within 48 hours

Return merchandise picked up; trucks 60% full on return

Walmart store layout

 

Walmart “Everyday low Prices”

Wal-Mart’s Sustainable Advantage Wal-Mart was able to assess each facet of their business and made every link in the value chain as lean and efficient as possible. Collectively, this is what made them successful with a sustainable competitive advantage. With the use of their new technologies they were able to better communicate internally with their management and distribution warehouses as well as externally with their vendors to rejuvenate their products/inventory. Additionally, Wal-Mart was able to capitalize on a growing target market (Sunbelt) when no other competitors did, they were able to leverage their weight with vendors dictating lower pricing, kept overhead costs low with employee wages and simple store fixtures, achieved high revenues per square foot with their strategic product mix, and capitalized on running fewer advertising campaigns. All of these actions in tandem with one another makes it difficult for competing discount stores to encroach on their market share.

Wal-Mart was able to assess each facet of their business and made every link in the value chain as lean and efficient as possible. Collectively, this is what made them successful with a sustainable competitive advantage. With the use of their new technologies they were able to better communicate internally with their management and distribution warehouses as well as externally with their vendors to rejuvenate their products/inventory. Additionally, Wal-Mart was able to capitalize on a growing target market (Sunbelt) when no other competitors did, they were able to leverage their weight with vendors dictating lower pricing, kept overhead costs low with employee wages and simple store fixtures, achieved high revenues per square foot with their strategic product mix, and capitalized on running fewer advertising campaigns. All of these actions in tandem with one another makes it difficult for competing discount stores to encroach on their market share.

Walmart's Business logic Everyday low prices More customers More goods sold Lower prices from suppliers Lower operating Costs

Add a comment

Related presentations

Related pages

Porter's Value Chain - Strategy Skills Training from ...

Creating good value for customers is ... Learn how to identify these value-adding activities in a systematic ... Porter's Value Chain focuses on ...
Read more

Value chain - Wikipedia, the free encyclopedia

A value chain is a set of activities that a firm ... for creating, communicating ... universal best practices for process execution. Value ...
Read more

Mapping of Porter’s value chain activities into business ...

According to Michael Porter value is the chain of activities for ... The best possible value can ... through creating and exchanging products and value ...
Read more

Statements on Management Accounting - IMA - The ...

Statements on Management Accounting ... their activities and value-creating ... must utilize the best mix of resources in creating value for its ...
Read more

Value Chain Analysis | Strategic Management Insight

Identify the customers’ value-creating activities. ... many interrelated activities and strategies used. The best combination ... Value Chain Analysis ...
Read more

The Value Chain - QuickMBA: Accounting, Business Law ...

Operations are the value-creating activities that transform the inputs into ... and other technology development used to support the value-chain activities.
Read more

Value Chain Analysis - NetMBA Business Knowledge Center

... and the role of value chain activities in developing a ... to be modified in order to allocate them properly to the value creating activities.
Read more

Chapter 1 Creating Value in Financial Services

Creating Value in Financial Services ... Adopting Best Practices and Creating Value: ... uses are the number and location of branches and the percent of ...
Read more